TECH NEWS – The decision by the two CEOs to back the Taiwanese chipmaker has resulted in an unusually strong market dominance.

In today’s AI-driven industry, chips have become a growing bottleneck, largely due to the limited nature of the global supply chain. For TSMC, the world’s largest chip manufacturer, fulfilling orders and onboarding new customers has become increasingly complex, largely because of its strong loyalty to existing partners. In a broader sense, this loyalty includes early access to production lines, faster delivery schedules, and close collaboration on IP technology development. TSMC’s approach to customer relationships is shaped not only by revenue, but also by long-standing partnerships that predate its rise to mainstream dominance.

There is little doubt that TSMC places immense value on its customer relationships. One clear example is how the company introduces price increases gradually and sustainably rather than through aggressive hikes. Looking back at its modest beginnings, TSMC entered an era dominated by giants such as Intel, Texas Instruments, and NEC. Building a foundry business from scratch under Morris Chang’s leadership was far from easy, yet the company consistently put customer needs first. This context matters, especially since Nvidia CEO Jensen Huang recently recalled promising Chang that Nvidia would become TSMC’s largest customer, despite setbacks like the troubled 28 nm process.

Beyond the hype surrounding HPC and AI, one of the key reasons Nvidia now commands a valuation of around $5 trillion is its close relationship with partners like TSMC. The Taiwanese manufacturer granted Nvidia exclusive status as the sole customer for its A16 process, while long-term agreements ensure a steady chip supply. This is yet another example of how prioritizing long-term relationships over short-term financial goals can pay off.

AMD also took a major gamble by transitioning to TSMC, especially given that it once operated its own manufacturing network, later spun off as GlobalFoundries. CEO Lisa Su has stated that trusting TSMC was one of the most critical decisions made under her leadership. The move proved to be a major win, particularly in gaining customer and server market share. By contrast, Intel Foundry has struggled for years with internal manufacturing issues, leading to underperforming products and forcing even Intel itself to rely on TSMC.

TSMC is now one of the most valuable players in the AI supply chain, alongside partners such as Nvidia and AMD. Based on its track record of collaboration, it’s clear why companies continue to choose TSMC as their primary manufacturer, even as Intel’s alternatives become more competitive. It is fair to say that without TSMC, neither Nvidia nor AMD would have reached their current milestones in AI and computing.

Forrás: WCCFTech